Lean Support To Highways England - Highways Industry
Lean Support toHighways England2015 – 2020
Lean Support to Highways England 2015 – 2020ForewordHighways England has three imperatives:Safety – our aim is that no one should be harmed when travelling or working on thestrategic road network. We care about each other, our suppliers, our customers andcommunities.Customer Service – improving how what we do impacts those that use the roads.Delivering the Road Investment Strategy – on time and efficiently.Lean principles provide a foundation to help enable all of these priorities to be achieved and ourLean approach will provide the skills and tools that support our organisation and those of oursupply chain partnersWe need to be bold and challenge some of our current practices, working with our suppliers tocontinuously improve. This is the basis of the Lean Division’s work. This strategy document setsout how Lean will help us to deliver the RIS efficiently, whilst improving customer service and mostimportantly, doing it all safely.Jim O’SullivanChief Executive2
Lean Support to Highways England 2015 – 2020The case for LeanOur ambition is that by 2020 Highways England: will realise a 250m contribution toward the Road Period 1 efficiency target of 1.2bnusing Lean techniques staff will use their Continuous Improvement skills every day. They will be empowered tosee and act on opportunities to improve their own and the organisation’s performance staff and delivery partners will be accountable for continuously improving performancein safety, customer satisfaction and efficiency will work with its delivery partners, suppliers, stakeholders, and customers to routinelyuse collaborative planning as an enabler to genuine collaboration will see productivity improvement demonstrated by year on year reduction in cost unitrates3
Lean Support to Highways England 2015 – 2020Purpose of Leanin Highways EnglandThis approach sets out how Lean supports Highways England to achieve our 5 Strategic Outcomesand specifically how we support the 4 Key Enablers set out in our Delivery Plan.The Strategic Outcomes are: Supporting economic growth Safe and serviceable network More free flowing network Improved environment More accessible and integrated networkThe Key Enablers are:CollaborativeRelationships Collaborative Relationships Delivering Performance and EfficiencyPeople andCompany Managing Risk and UncertaintyDeliveringPerformance andEfficiencyManagingRisk andUncertainty People and CompanyThe approach sets out where Highways England Lean division fits into the wider organisation andhow we envisage we can deliver support to our internal customers to achieve their objectives andto engender a culture of continuous improvement in safety, customer satisfaction and performance.Customer Operations Senior Leadership TeamTo help improve team planning, performancemanagement and problem solving acrossCustomer Operations Senior Leadership Team,we supported the use of visual managementtechniques based on Continuous Improvement(CI) cells. This methodology has introducedmore evidence based customer focusseddiscussions with a clearer alignment toward theorganisation’s objectives.4
Lean Support to Highways England 2015 – 2020How we supportHighways England – Our strategy on a pageThe traints onbusinessEnvironmentalimpactLack of customerinformationThe Road Investment Strategy sets out the government’s vision for the network.Performance specification, investment plan and funding.The responseStrategic Business PlanHighways England is the new company that will deliver this ambition.What we will doModerniseMaintainOperatePlanning forthe futureGrowing ourcapabilityBuildingrelationshipsEfficient andeffective deliveryImprovingCustomer serviceSupportingeconomicgrowthSafe andserviceablenetworkMore freeflowingnetworkImprovedenvironmentMore accessibleand integratednetworkHow we will deliverWhat we will deliverDelivery PlanKey EnablersManagingRisk andUncertaintyDeliveringPerformance andEfficiencyPeople andCompanyCollaborativeRelationshipsLean provides a keystone thatsupports the organisation in meetingits strategic challenges, delivered byspecific activities through the 4enablers.5
Lean Support to Highways England 2015 – 2020How we supportCollaborative RelationshipsSupporting Highways England to strengthen and develop collaborativerelationships with suppliers and stakeholders by: establishing Collaborative Planning as standard practice across ourbusiness using Collaborative Planning to achieve ownership, alignment andcommitment to a shared plan helping the supply chain to assess their own Lean maturity and provideguidance to future development sharing Lean efficiencies through knowledge transfer and learning working with our supply chain on process improvement embedding Lean into the Highways England Supply Chain Strategyand Value Chain plans developing supplier capability in the use of Lean principles, tools andtechniquesCollaborativeRelationshipsPeople andCompanyPeople and CompanySupporting Highways England people strategy by:Accountable leadership using CI cells to empower team members to own and improve performance leaders owning and improving their end to end processes, enhancing valueand reducing wasteCapable employees providing training and support for people in the use of Lean principles, toolsand techniquesCustomer focused delivery helping our people to identify and understand the requirements of their keycustomers using Lean ‘Voice of the Customer’ principlesPerformance visibility helping leaders develop customer focussed performance indicators6
Lean Support to Highways England 2015 – 2020Delivering Performance and EfficiencySupporting and facilitating Highways England to improve performance andefficiency by: understanding and defining customer value using Lean principles, tools and techniques to deliver performanceimprovement in: safety quality process cycle time staff time staff engagement financial savings carbon emissionDeliveringPerformance andEfficiencyManagingRisk andUncertainty demonstrating that Lean efficiencies have contributed 250m towards the 1.2bn targetManaging Risk and UncertaintySupporting and facilitating Highways England in management of risk anduncertainty by: establishing a clear definition of customer value to enable focus on “doingthe right thing the right way” using Lean tools to minimise subjective decision making establishing standardised work principles reducing process variation to deliver predicable outcomes training all staff in problem solving techniques using Collaborative Planning to improve programme certainty applying “no errors forward” thinking and methods using performance cells to create a culture of ownership and rapid responseto emerging issues7
Lean Support to Highways England 2015 – 2020What we doThe objective of Lean is ‘to get value to flow at the pull of the Customer and then improve each day.To achieve this we: focus on understanding and delivering customer value work across suppliers and our directorates to improve end to end business processes andget value to flow through value streams work with teams to engage them in continuously improving their own local rEnd to end business process (value streams)Pavement Efficiency ProgrammeCollaborate& ContractBest DesignNeedOptionsDesignBuild &LogisticsContractProduction cienciesand reportClientDesignersSuppliersFollowing productivity improvements to overnight resurfacing activities, Lean thinking hassupported steering group work by focussing on the end to end process.This work brings together our directorates and suppliers to identify the value stream andcontinuously improve.8
Lean Support to Highways England 2015 – 2020Our ‘House of Lean’ sets out the core themes of our approachContinuous ImprovementKnowledge TransferBenefits RealisationProblem SolvingVisual ManagementCollaborative PlanningIncreasing Lean MaturityPeople – Capability The objective is for Highways England and its supply chain to routinely work together tocontinuously improve safety, customer experience and efficiency There is a structured approach to increasing Lean maturity using the Highways EnglandLean Maturity Assessment (HELMA) Our five supporting themes are: collaborative planning visual management problem solving benefit realisation knowledge transfer The objective is only realised by developing the Lean capability of our people and those ofour suppliers.9
Lean Support to Highways England 2015 – 2020Lean Value Contribution PlanOur Lean approach underpins the 4 key Enablers described in the Delivery Plan that will enabledelivery of our 5 Strategic Outcomes.We use Lean policy deployment to develop specific plans with each of our internal customers,providing clear line of sight between the Key Enablers, our lean tools, the specific interventions wecommit to and measurable benefits we plan to achieve. The profiled plan showing the contributionLean will make to business objectives is set out in our Lean Value Contribution Plan (LVCP).The diagram opposite summarises our approach: understanding value; working with ourcustomers; and supporting contribution to achieve Strategic Outcomes and KPIs.Area 9 Resurfacing ProductivityThe challenge was to increase the surfacing output in a night shift. The scheme was averaging240 tonnes per night.Using Production Management we were able to help the area team increase this by 54% onaverage with a maximum in one shift of over 1000 tonnes.In total this helped to create a cost benefit of c 600k for the project and reduce the projecttime by a third, or 18 overnight road closures. Having fewer overnight closures has customerbenefits and reduces road worker exposure to potential harm.10
Lean Support to Highways England 2015 – 2020How it fits together5 Strategic OutcomesWhat we will deliverSupportingeconomicgrowthSafe andserviceablenetworkDelivery PlanKey EnablersMore freeflowingnetworkManagingRisk andUncertaintyImprovedenvironmentMore accessibleand integratednetworkPeople andCompanyDeliveringPerformance andEfficiencyCollaborativeRelationshipsLean SupportUnderstanding value and delivering improvementContinuous ImprovementKnowledge TransferEnd to end business process (value streams)Benefits RealisationIncreasing Lean MaturityCustomerProblem SolvingOperationsVisual ManagementMajorProjectsCollaborative PlanningSupplyChainPeopleOur customersTailored relationships and support to our Our contributionCommitments made within the Lean ValueContribution Plan to support HighwaysEngland KPIsDeliver measurable improvements for ourcustomers via the 4 enablersOur objectiveHighways England and its supply chain routinely working together to continuously improvesafety, customer experience and efficiency11
Lean Support to Highways England 2015 – 2020How we measure successWe measure and capture the benefits achieved using our Benefits Realisation Capture Processwhich has been assured by Highways England audit.During the five year period 2010 to 2015 we achieved c 100m savings from Lean interventions.In the period 2015 – 2020, Lean has a target contribution of 250m toward the Road Period 1 1.2bn efficiency target. The Lean Value Contribution Plan identifies how and where this target willbe achieved.We also target and capture improvement in: Safety Staff engagement Sustainability Quality (reduction in errors) Time (reduction in process time)Boston Manor Viaduct StrengtheningThree months before the 2012 London Olympics, cracks were identified on this crucial M4viaduct linking Heathrow to central London. It was imperative that the viaduct be fully open intime for the Olympic Games.We applied Collaborative Planning and Production Management to improve planningreliability and integration between multiple contractors to enable confident delivery of therepairs within the limited time available prior to the Games.This intervention enabled the challenging programme to be achieved and the viaduct to befully open for the Games despite additional cracks being discovered during the works.12
Lean Support to Highways England 2015 – 2020History and contextThe Lean division was established in April 2009 and initial focus was on creating a foundation ofideas and people to generate momentum. Activity was concentrated on supply chain areas beforemoving into our organisation in 2012.Auditable savings of c 100 million were achieved between 2010 and 2015 and a methodologyto share good practice via Knowledge Transfer Packs was established. The return on investmenthas historically been circa 25:1 and to underpin these advances a series of guides werepublished outlining a standardised approach to techniques such as collaborative planning, visualmanagement and benefits realisation. Supplier organisations were encouraged to develop theirown Lean programmes and progress was assessed by the Highways Agency Maturity AssessmentTool (HALMAT) which was based on industry standard models.The launch of Highways England and the growth challenges presented during Road Period 1provide a fantastic opportunity for Lean to support the business in delivering increasing value toour customer more efficiently and safely.Contacts and Further InformationLean email box:LeanImprovement@highwaysengland.co.ukPaul DoneyHighways EnglandPiccadilly GateStore StreetManchester M1 2WDTelephone: 0300 470 5177Email: Paul.Doney@highwaysengland.co.uk13
Lean Support to Highways England 2015 – 2020What is Lean?There are FIVE overriding principles of Lean. Identify Customers and Specify Value - The starting point is to understand the specific needsof our Customer and to establish what represents value from their perspective. By clearlydefining customer value for a specific product or service from the customer’s perspective,non-value adding activities - or waste - can be targeted for removal. Typically, only a smallfraction of the total time and effort organisations expend in their processes actually addsvalue for the customer. Identify and Map the Value Stream – The Value Stream is the entire set of activities across allparts of the organisation involved in delivering a specific product or service. This representsthe end-to-end process that delivers value to the customer. Once you understand what yourcustomer wants the next step is to identify how you are delivering (or not) that to them. Create Flow by Eliminating Waste – Typically when you first map the Value Stream you willfind that only a very small proportion of activities are contributing to customer value (oftenonly 5% or even lower!). Eliminating non-value adding or waste activities ensures thatproducts or services “flow” to the customer with minimal interruption, detour or delay. Respond to Customer Pull – This is about understanding the customer demand on theservice you provide and then designing processes that respond to this. The goal is to provideonly what the customer wants when the customer wants it. Pursue Perfection - Creating flow and pull often starts with the improvement of individualprocess steps within a broader value stream. However, gains become truly significant as allthe steps link together. As this happens more and more layers of waste become visible andthe Lean journey continues towards its theoretical end point of perfection, where every assetand every action adds value for the end customer.Bidston Moss viaduct Refurbishment and StrengtheningThis viaduct on the M53 had a weight restriction placed on it and a project to strengthen andrefurbish the viaduct was initiated.Implementation of Collaborative Planning, Production Management and ProcessImprovement helped to lift the restrictions months earlier and the overall project was deliveredearly with audited Lean related cost savings of 1.16m.14
If you need help accessing this or any other Highways England information,please call 0300 123 5000 and we will help you. Crown copyright 2016.You may re-use this information (not including logos) free of charge in any format ormedium,under the terms of the Open Government Licence. To view this licence:visit cence/write to the Information Policy Team, The National Archives, Kew, London TW9 4DU,or email psi@nationalarchives.gsi.gov.uk.This document is also available on our website at www.gov.uk/highwaysIf you have any enquiries about this publication email info@highwaysengland.co.ukor call 0300 123 5000*. Please quote the Highways England publications code PR184/15.Highways England creative job number N150559*Calls to 03 numbers cost no more than a national rate call to an 01 or 02 number and must count towards any inclusive minutesin the same way as 01 and 02 calls. These rules apply to calls from any type of line including mobile, BT, other fixed line orpayphone. Calls may be recorded or monitored.Printed on paper from well-managed forests and other controlled sources.Registered office Bridge House, 1 Walnut Tree Close, Guildford GU1 4LZHighways England Company Limited registered in England and Wales number 09346363
Lean Support to Highways England 2015 2020 2 Foreword Highways England has three imperatives: . We use Lean policy deployment to develop specific plans with each of our internal customers, . Tool (HALMAT) which was based on industry standard models. The launch of Highways England and the growth challenges presented during Road Period 1
Lean Six Sigma Yellow Belt provides a detailed information on the Lean Six Sigma fundamentals and ways to apply Lean Six Sigma to specific industry to achieve desired results. LEAN MANAGEMENT 1.0 Introduction to Lean 2.0 What is Lean & Application of Lean
Highways England's Lean deployment strategy is a key element Total Expenditure in the Regulated 5 year period 16bn Capital efficiency savings of 1.212bn by 2020 "Wewill implement a Lean deployment strategy that will build a culture of continuous improvement throughout Highways England and its supply chain to deliver increased customer .
Creating a Lean Culture, states: “Many Lean implementations fail because Lean is too easy! That is, too easy to implement the physical trappings of Lean while failing to notice the need for a parallel implementa - tion of Lean manage - ment.”4 “Lean mana
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selection and development process, to test the alignment of our key suppliers to Highways England strategy, as defined in our Strategic Plan, Supply Chain Strategy and Procurement Strategy, and in a range of other Highways England and Government documents and policy papers. StART provides Highways England with an in-depth assessment of the
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